Literated Market Research: Global Wine Production Is Shifting Its Power Center

Global wine production is shifting base from the European countries to emerging markets. Countries like Australia, New Zealand, Chile and South Africa are growing and estimates peg this growth at a massive 370% in some cases. China has overtaken France in terms of vineyard area and is second only to Spain.

Bangalore, India -- (ReleaseWire) -- 09/08/2015 -- The global wine industry is seeing a gradual but subtle shift in its power center. France and Italy were by far the largest and the second largest producer of wine in the world respectively. France produced 46.7 mhl of wine while Italy brewed 44.7 mhl of wine in 2014-2015. This has been the trend for years in the global wine industry. If the wine production in Spain is added to those of France and Italy, the three would account for 47% of the global annual production of wine.

But in recent years, and especially in the last two years, new wine producing countries and regions have emerged. The shift is evident in the perceived increase of 370% in wine production and exports from countries like Australia, New Zealand, Chile and South Africa. On the other hand, traditional European countries are producing lesser and lesser amounts of wine. The fall in the European production of wine has been attributed, by SOE (Standard Operating Environment), to the common Agricultural policy of the European Union that has seen complete uprooting of vineyards to be replaced by other produce.

Comparison of figures from a decade ago would put things in perspective. More than 73% of the total supply of wine in the international market was done by the European countries in the early years of 2000. This figure has dropped to less than 60%, for the entire area of the European Union. While the 60% might still seem massive, the trend in decline continues to pick up and with the continuing trend, it is predicted that the continent would cease to be the largest supplier of wine to the international market by 2030.

While the area for vineyards may be shrinking in Europe, the area for wine growing is on the rise in China. China is fast coming up as a major wine producing country as it surpassed France in 2015 in terms of the total vineyard area. The vineyard area in China as reported a few months ago totaled 799,000 hectares. China is now just second to Spain, which has 1,02 million hectares, in terms of vine area.

The total vineyard area in the world has shrunk by 500,000 hectares in the last 12 years with the total vineyard area in 2015 standing at 7,519,000 hectares.

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